Wednesday, October 28, 2020
Add this page to Blinklist Add this page to Del.icoi.us Add this page to Digg Add this page to Facebook Add this page to Furl Add this page to Google Add this page to Ma.Gnolia Add this page to Newsvine Add this page to Reddit Add this page to StumbleUpon Add this page to Technorati Add this page to Yahoo


ideas have consequences

You are here:Home>>Archive>>NIGERIAN ECONOMY AND IMF FORECASTING
Friday, 06 May 2011 13:23

NIGERIAN ECONOMY AND IMF FORECASTING

Written by admin
Rate this item
(0 votes)
L-R-- Mr. Saul Lizondo, Deputy Director, International Monetary Fund (IMF) African Department; Mr. Abebe Selassie, Head of Regional Studies, IMF, Mr. Danla Kifasi L-R-- Mr. Saul Lizondo, Deputy Director, International Monetary Fund (IMF) African Department; Mr. Abebe Selassie, Head of Regional Studies, IMF, Mr. Danla Kifasi worldstaage

IMF comes with depressing forecast of lower productivity and higher inflation

There is no doubt about this assertion; International Monetary Fund (IMF) is adamant and committed about being an important entity on Nigerian economic and financial scene. IMF the self-appointed chief financial adviser to Nigeria has made its annual econometric forecast on country’s economy. IMF the bearer of the depressing news is predicting that Nigerian economy will slow down from its above 8 percent growth to 6.9 percent, thus resulting to a GDP lowered by 17.9 percent. Still on the bad news IMF said the economic slowdown will be accompanied with higher inflation.

IMF do not produce any commodity or provide a recognized service that contribute to growing of the country‘s economy. Rather IMF officials have managed to have the ears of the managers of the economy simply on the ground that it is a global monetary and financial institute. But Nigeria must ask herself what has IMF done for her lately.

What has IMF done for Nigeria? That is an easy question to answer; lately IMF has advised Nigeria to devalue her currency naira without giving a logical reason for their advice. For naira that is already weakening by rising inflation to be devalued is for Nigeria to be inviting economic woes voluntarily. Nigeria with undiversified economy with crude oil as a major export to venture to the path of currency devaluation is trekking to road of higher inflation, higher prices of essential commodities and slows down of economic output.

IMF assertion and extrapolation on the Nigerian economy was not elaborated with a particular point of view, principle, proofs and genesis of the declaration. On what logic and economic basis are the elites of IMF making this forecast? This is not to cast a doubt or a shadow on their forecasting, but economics is not based on natural laws because it is a social science. In econometric forecasting nothing is written on stones due to the malleability of economic principle, therefore there is a quantifiable probability that IMF forecasting may not come true.

Nigerian economic and financial gatekeepers must take this with a grain of salt, as an opportunity to review their economic inventory and make necessary adjustments where needed. But one thing that they cannot afford to do is to swallow it as a given, without ready to make their research and analysis. Nigerians must not say ok! And sit down waiting for the rough times to come. The country must be pro-active and be in charge of their economic destiny not waiting for IMF to tell them what to do.

The point must be made perfectly clear that Nigeria should listen to IMF by separating the grain from the chaff. In some aspects of Nigerian economy IMF has some good points. In terms of cutting down on spending and slowing down on the excessive borrowing, there are truths to that. But in some cases when rising spending becomes inevitable as resources are being invested on the people with regards to providing education facilities and social infrastructures, then it will be a return that will eclipse the down side of increasing spending. There are investments on the society and the people that may have short term effects including budget deficits but at the long run it will aid to strengthen the nation by increasing productivity and wellbeing.

image                                                                                                                       

L-R: FINANCE MINISTER, DR OLUSEGUN AGANGA AND CBN GOVERNOR, MALAM LAMIDO SANUSI

Instead of IMF over emphasising about economic slowdown in Nigeria, it should also look at the positive development and growing maturity of the country. IMF can put more emphasis on the economic correlation between increasing investments and good elections. IMF can use their global megaphone and tell the rest of the world that credible election held in Nigeria shows stability and continuation, that Nigeria is truly ready to do business with world. That can help to attract foreign investments thus averting economic slowdown.

 IMF should and can significantly impact the country positively by counseling Nigeria on how energy conservation and its availability can help to checkmate inflation and trade deficits. When Nigeria has ample electric energy to operate their local industries that can ultimately aid to retard and stop excessive and unnecessary importations.

The point to be made is that IMF can go beyond the gateway of financial control. But also IMF can enhance its responsibility as a financial disciplinarian by becoming a cheerleader to a documented progress in a nation and that can in turn bring in goodwill and economic gains.

 

 

Last modified on Sunday, 08 May 2011 16:03
admin

admin

Website: Afripol.org E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

23 comments

  • Comment Link Wholesale Jerseys Monday, 17 August 2015 08:03 posted by Wholesale Jerseys

    may be a breathless event. determine if a fly glob and your joints and muscles, it can be a selfsame inexpensive concluded the
    strange. interchange the rebound as you attempt to sustain the decent
    written document, find the one gainful for their commercial
    instrument codes to propose them. If you are Cheap NFL Jerseys Cheap NFL Jerseys China Cheap
    NFL Jerseys China Cheap NFL Jerseys Cheap NFL Jerseys China Cheap NFL Jerseys China China Cheap NFL Jerseys Cheap NFL Jerseys NBA Cheap Jerseys Cheap NFL
    Jerseys push that your bases gift get to the job intent pay 100
    pct charge on sales volition change your quotation evaluate, but
    call up that worldwide events can by all odds get started in profit-maximizing the total,
    neck of the woods literal class get word and instrument guidance to scratch each separate.

    Hopefully you present be determination

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link dramaticsuccess1.blog.com Wednesday, 22 July 2015 21:43 posted by dramaticsuccess1.blog.com

    El único pero es que la ventosa debería ser más eficaz.

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link www.iwcsite.info Wednesday, 22 July 2015 05:27 posted by www.iwcsite.info

    I do noot even know the way I ended up here, but I belieed this submit was good.

    I don't recofnise who you're howevsr certainly you're going to
    a famous blogger should you are not already.
    Cheers!

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link porno Sunday, 12 July 2015 13:35 posted by porno

    Heya! I realize tɦіs is sort of οff-topic ɦowever I needed tօ aѕk.
    Does building a wеll-established website lije ƴourѕ requirfe a lot of ѡork?
    I'm brand neա tο blogging howevеr I do ԝrite in my joujrnal on a daily basis.
    І'd liƙe to start а blog so I can easily share mү oԝn experience and feelings online.
    Ƥlease llet me ƙnow if yօu have any ideas or tips fߋr brand neԝ aspiring blog owners.
    Thankyou!

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link m88 Tuesday, 23 June 2015 03:45 posted by m88

    Simply desire too say your article is as surprising. The clarity in your post is
    ust great and i could assume you're ann expert on this subject.
    Well with your permission allow me to grab your fee to keedp updated
    with forthcoming post. Thanks a millpion and please keep up
    the rewarding work.

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link Sheila Monday, 22 June 2015 15:19 posted by Sheila

    This excellent website definitely has all of the info I wanted
    concerning this sugject and didn't know
    who to ask.

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link demande de credit Monday, 22 June 2015 05:34 posted by demande de credit

    Je viens de surfer sur ton super site et je partages ta passion et j’aime beaucoup les articles que l'on y trouve.

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link m88 ทางเข้า Sunday, 21 June 2015 18:49 posted by m88 ทางเข้า

    Thanks for sharing your info. I really appreciate your efforts annd I
    will be waiting for your further post thank you once again.

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link m88 Sunday, 21 June 2015 08:56 posted by m88

    This paragraph presents cler iidea designed for
    the new users of blogging, thatt truly how to do blogging and site-building.

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • Comment Link eastjournal.org Sunday, 21 June 2015 08:39 posted by eastjournal.org

    bookmarked!!, I love your web site!

    This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Add comment